MIL OSI Translation. Region: Germany / Deutschland –
Source: Federal Ministry of Finance
The current crisis is hitting all states hard economically and is demanding tough cuts from citizens and companies. The G20 is particularly challenged in economic crises, as the corona pandemic shows us particularly clearly – because we can only solve global crises together. As the largest economies in the world, the G20 therefore have a special responsibility, which they are currently fulfilling to a large extent.
Because together, the G20 have managed to prevent the worst through their decisive and extensive response to the crisis and to set the course for a swift economic recovery. To this end, the G20 finance ministers and central bank governors adopted an updated action plan to respond to the corona pandemic at their meeting on October 14, 2020 on behalf of the heads of state and government. They presented a progress report on their efforts to the heads of state and government at their virtual summit under the Saudi presidency on November 21 and 22, 2020.
During the crisis, the G20 acted firmly and resolutely and prevented a fatal downward spiral in the global economy. The updated G20 action plan that we have drawn up makes it clear that we are holding out against the crisis internationally with all our might. The G20 finance ministers fought this crisis with a total of 9,300 billion euros; we made a significant contribution with our resolute crisis response in Germany. During this crisis, the twenty largest economies in the world have shown once again: When it comes down to it, the G20 are capable of acting and have a punch. Federal Minister of Finance Olaf Scholz
The most important figures from the progress report of the G20 finance ministers and central bank governors on the action plan:
The G20’s fiscal response to the crisis amounts to a total of around 9,300 billion euros (11,000 billion USD, on average around 14% of GDP). Germany contributes to this with significant fiscal policy crisis measures (budget-effective measures in the amount of 515.9 billion euros or 15.6% of GDP and guarantees in the amount of 826.3 billion euros or 25% of GDP , As of September 2020) made a very large contribution.
This includes e.g. Direct support measures by the G20 to keep jobs amounting to approx. € 1,100 billion (USD 1,300 billion). In this context, for example, until the end of October alone. B. in Germany spent 18.4 billion euros on short-time work.
In order to provide medical solutions to the corona pandemic as quickly as possible, the G20 made a significant contribution to mobilizing funds for the international Access to Covid-19 Tools Accelerator (ACT-A) initiative. To date, around 4.3 billion euros (5.1 billion USD) have been made available for the development and globally fair distribution of vaccines, therapeutics and diagnostics. In addition, countries with a volume of 4.1 billion euros (4.9 billion USD) have secured options for vaccines for their own use via the ACT-A platform. Germany is so far the second largest bilateral donor to ACT-A with around 615 million euros (727 million USD). The EU supports i.a. the COVAX vaccine column from ACT-A with a loan from the European Investment Bank i. H. v. 400 million euros. Further grants from the EU in the amount of 100 million euros are intended. Despite the German and European contributions, there remains a funding gap at ACT-A, which Germany is committed to closing in the further G20 negotiations.
Applications for the debt moratorium agreed by the G20 have been submitted by 46 countries, with which around 4.8 billion euros (5.7 billion USD) in interest payments could be deferred.
Since the beginning of the crisis, the IMF has also provided support amounting to around EUR 86.2 billion.
The multilateral development banks want to provide countries in crisis with a total of around 194 billion euros (230 billion USD) in support.
The latest news makes us feel confident: Several vaccines against Covid-19 are about to be approved. It is still too early to give the all-clear, but at least these developments give hope. I have therefore made a clear appeal to the finance ministers. We need a global alliance to ensure fair and equitable access to vaccines. That is why Germany supports the multilateral vaccination initiative COVAX. Germany and Europe have already pledged considerable financial resources. It is necessary for all G20 countries to participate. I emphasized that again in the circle of the G20 finance ministers. Germany is already the second largest donor to participate in the international initiative for the provision of vaccines and therapeutics. Federal Minister of Finance Olaf Scholz
Further important content-related points of the joint action plan and progress report:
Many countries are implementing measures to make economic recovery environmentally friendly and sustainable.
As part of their stabilization measures and economic stimulus packages, the G20 have also committed to resolutely counteracting the unequal effects of the pandemic on women, young people and other possibly disadvantaged groups in society.
The G20 are supporting the world’s poorest countries with a debt moratorium extended until the end of June 2021 and a multilateral framework for debt restructuring for insolvent developing countries.
The central banks have stabilized the markets and ensured financial stability with expansive monetary policy and regulatory measures.
The G20 are developing plans to learn from this crisis and to be structurally better prepared for future pandemics and economic crises.
The G20 action plan against the corona crisis will be updated again next year under the Italian G20 presidency to take into account the dynamic development of the crisis.
Another important topic for the Italian G20 presidency will be the reform of global corporate taxation. The declared goal of the G20 is that the work of the G20 / OECD Inclusive Framework on BEPS on the two pillars of the reform project will be completed by mid-2021. Note: The exchange rate from November 16, 2020 – the date of finalization – was used to convert the exchange rates into euros of the progress report – used. The conversion and rounding can lead to distortions.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.